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A review of the UK StewardshipCode 2020 should prompt evolution rather than revolution, according to industry experts, who want to see refinement aimed at further improving outcomes. But some have queried the extent of the code’s effectiveness so far.
This is a significant hiring slowdown, perhaps indicating that stewardship and engagement is an area that managers are willing to cut as they face more challenging times financially,” the report mentioned.
While one asset manager reported 5,312 engagement actions over 12 months, five others recorded 200 or fewer over the same period. F irms like rezonanz , launched earlier this year, aim to provide improved voting and engagement analytics for asset owners to bolster their stewardship efforts and improve visibility of asset managers’ activities.
These long-held principles of sustainability have filtered down to the world of investment. According to figures published by The Global SustainableInvestment Alliance in 2021, Japan’s total sustainablyinvested assets stood at US$42,874 billion in 2020, representing a more than fivefold increase from 2016.
Hardwiring sustainability into financial regulations is already on policymakers’ agenda. Research prepared by the Principles for Responsible Investment (PRI) shows that there are close to 900 policy tools or revisions that support responsible investors in 2022. By comparison, in 2019, there were fewer than 600; and in 2013, 300.
If you look at stewardshipcodes across the world, they touch on resources as being a key element, but without explicitly giving out guidance on how organisations can report and which resources are required,” Jessica Gao, Director of Research at the TAI, told ESG Investor. “The
At a glance, the rising number of ESG-related shareholder proposals filed and backed by investors shows a growing appetite amongst asset owners to push systemic stewardship further and secure positive environmental and social outcomes. Transparency is improving, but slowly.
Paul Lee, Head of Stewardship and SustainableInvestment Strategy at investment consultants Redington, told ESG Investor the proposals should simplify the vote reporting process for both parties.
Scanning across to the Financial Reporting Council’s UK StewardshipCode, the 2020 Code represents a mature governance regime for UK-listed businesses. It has its origins in 1992’s Cadbury report and code, which covers the financial aspects of corporate governance.
Maanch enhances stewardship platform as fast-changing expectations lead to new pressures on service providers to support collaboration. The vital and expanding role of stewardship in reaching sustainableinvestment goals is prompting a step change in the technology deployed to support it. trillion in AUM.
The concept of assessing what effective stewardship should look like was first introduced by the FCA in 2019 in a joint effort with the Financial Reporting Council (FRC), setting the groundwork which helped define what the minimum expectations should be for financial services firms investing on behalf of clients and beneficiaries.
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